UPS, FedEx Tops in Pilot Pay

CHARLOTTE, N.C. -- A new survey shows that pilots at overnight cargo carriers FedEx(FDX Quote) and UPS(UPS Quote) command the highest salaries among the 11 largest U.S. airlines, while pilots at US Airways(LCC Quote) are the lowest paid.

The discrepancies reflect trends that have shaped airline pay patterns since the Sept. 11 terrorist attacks, including a round of bankruptcies that enabled reduced costs at passenger airlines and a unique battle between pilots at US Airways, as well as society's increasing reliance on the overnight carrier duopoly.

For the overnight carriers, "the barriers to entry are high, the Internet boom has helped them a lot and the business wasn't that badly affected by 9/11," says Louis Smith, a retired Northwest captain who is president of Flt.Ops.com, which provides career counseling for pilots and conducted the pilot pay survey.

Major Airline Pilot Pay Compensation FltOps.com

Among the 10 leading passenger carriers, four sought bankruptcy protection during the four years following the attacks and the concurrent economic slowdown. For the industry, the bankruptcy restructurings enabled two years of profits, in 2006 and 2007, following a five-year period when net losses totaled about $35 billion.

For decades, pilots for passenger carriers were kings of the sky, while pilots for overnight and cargo carriers were sometimes thought of as not-ready-for-prime time. In recent years, that perception has disappeared.

The current recession is impacting both overnight and passenger carriers. FedEx and UPS are each seeking $1 billion in annual cost reductions, and pilot costs are not exempt. UPS, for instance, wants $40 million in 2009 savings from its pilots, as well as additional savings in future years. The company, which recently retired its DC-8 fleet, says it has 300 pilots more than it needs.